Applied Optoelectronics

Optical transceivers typically exhibit commodity like pricing with frequent declines over product cycles. AOI’s 2025 GAAP gross margin improved to 30.0 percent, but this largely reflects favorable mix and scale rather than enduring pricing power.

Any premium for U.S. based production and automation may temporarily support pricing with select North American hyperscalers as 800G ramps, yet competition and customer bargaining power will likely cap sustainable margin expansion.